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In: Accounting
In December 2016, Infodeo established its predetermined overhead rate for movies produced during 2017 by using...
In December 2016, Infodeo established its predetermined overhead rate for movies produced during 2017 by using the following cost predictions: overhead costs, $2,268,000,and direct labor costs, $420,000. At year-end 2017, the company’s records show that actual overhead costs for the year are $2,342,400. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released $ 400,000 Movies still in production 36,000 Total actual direct labor cost $ 436,000 1. Determine the predetermined overhead rate for 2017. 2&3. Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.
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ekkarill92 answered 1 year agoRelated Solutions
In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by...
In December 2016, Custom Mfg. established its predetermined
overhead rate for jobs produced during 2017 by using the following
cost predictions: overhead costs, $1,550,000, and direct materials
costs, $500,000. At year-end 2017, the company’s records show that
actual overhead costs for the year are $1,624,100. Actual direct
material cost had been assigned to jobs as follows.
Jobs completed and
sold
$
400,000
Jobs in finished goods
inventory
70,000
Jobs in work in process
inventory
51,000
Total actual direct materials
cost...
At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the...
At the beginning of the year, Custom Mfg. established its
predetermined overhead rate by using the following cost
predictions: overhead costs, $1,200,000, and direct materials
costs, $400,000. At year-end, the company’s records show that
actual overhead costs for the year are $1,532,400. Actual direct
materials cost had been assigned to jobs as follows.
Jobs completed and sold
$
380,000
Jobs in finished goods inventory
80,000
Jobs in work in process inventory
48,000
Total actual direct materials cost
$
508,000
1....
In December 2016, Shire Computer’s management establishes the 2017 predetermined overhead rate based on direct labor...
In December 2016,
Shire Computer’s management establishes the 2017 predetermined
overhead rate based on direct labor cost. The information used in
setting this rate includes estimates that the company will incur
$741,000 of overhead costs and $570,000 of direct labor cost in
year 2017. During March 2017, Shire began and completed Job
13-56.
1. What is the predetermined overhead rate for
2017?
2. Using the information on the following job cost
sheet, determine the total cost of the job....
26) In December 2016, Shire Computer’s management establishes the 2017 predetermined overhead rate based on direct...
26)
In December 2016, Shire Computer’s management establishes the
2017 predetermined overhead rate based on direct labor cost. The
information used in setting this rate includes estimates that the
company will incur $780,000 of overhead costs and $520,000 of
direct labor cost in year 2017. During March 2017, Shire began and
completed Job 13-56.
1. What is the predetermined overhead rate for
2017?
2. Using the information on the following job cost
sheet, determine the total cost of the...
The predetermined overhead rate for manufacturing overhead for 2016 is $5.00 per direct labor hour. Employees...
The predetermined overhead rate for manufacturing overhead for
2016 is $5.00 per direct labor hour. Employees are expected to earn
$8.00 per hour and the company is planning on paying its employees
$290,000 during the year. However, only 80% of the employees are
classified as "direct labor." What was the estimated manufacturing
overhead for 2016?
What are the manufacturing overhead costs? Assigned costs to products using a predetermined overhead rate using...
What are the manufacturing overhead costs?
Assigned costs to products using a predetermined overhead
rate using a standard costing system, as discussed, job costing,
and manufacturing activity-based costing.
Assume manufacturing overhead costs are often called
overhead costs applied to products going through the
Assembly department.
The journal entry reflect manufacturing overhead costs applied
to products going through the Finishing department is as
follows:
Transferred-In Costs
The costs associated with manufacturing should transfer from the
work-in-process inventory account for the production...
This exercise will deal with the costing of a product using a predetermined overhead rate and...
This exercise will deal with the costing of a product using a
predetermined overhead rate and Activity Based Costing (ABC).
Please note the different results from using the different
methods.
The Sample Company wants to compare the results from the use of
a predetermined overhead rate versus Activity Based Costing (ABC).
The following are the estimated costs:
Estimated Manufacturing Overhead
$ 1,000,000.00
Estimated direct labor hours (DLH)
40000
Predetermined Overhead Rate
$ 25.00
per DLH
Mono-Relay
Bi-Relay
Time to Make...
This exercise will deal with the costing of a product using a predetermined overhead rate and...
This exercise will deal with the costing of a product using a
predetermined overhead rate and Activity Based Costing (ABC).
Please note the different results from using the different
methods.
The Sample Company wants to compare the results from the use of
a predetermined overhead rate versus Activity Based Costing (ABC).
The following are the estimated costs:
Estimated Manufacturing Overhead
$ 1,000,000.00
Estimated direct labor hours (DLH)
40000
Predetermined Overhead Rate
$ 25.00
per DLH
Mono-Relay
Bi-Relay
Time to Make...
This exercise will deal with the costing of a product using a predetermined overhead rate and...
This exercise will deal with the costing of a product using a
predetermined overhead rate and Activity Based Costing (ABC).
Please note the different results from using the different
methods.
The Sample Company wants to compare the results from the use of
a predetermined overhead rate versus Activity Based Costing (ABC).
The following are the estimated costs:
Estimated manufacturing overhead
$1,000,000.00
Estimated direct labor hours (DLH)
40,000
Predetermined overhead rate (per DLH)
$25.00
Mono-Relay
Bi-Relay
Time to make one unit...
Predetermined Overhead Rate, Overhead Variances, Journal Entries Craig Company uses a predetermined overhead rate to assign...
Predetermined Overhead Rate, Overhead Variances, Journal
Entries
Craig Company uses a predetermined overhead rate to assign
overhead to jobs. Because Craig's production is machine intensive,
overhead is applied on the basis of machine hours. The expected
overhead for the year was $6,461,400, and the practical level of
activity is 363,000 machine hours.
During the year, Craig used 369,500 machine
hours and incurred actual overhead costs of $6,502,100. Craig also
had the following balances of applied overhead in its accounts:
Work-in-process...
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